Predicting entries for any instrument can be a confusing process. There are so many different forms and types of technical analysis out there, that it makes it difficult to decide which method is the best. The ‘best’ doesn’t exist, but I do believe that the Ichimoku Kinko Kyo system is probably one of the best trading systems out there – and it excels in its ability to find entries.

Utilizing Ichimoku for Trade Entries

For the purposes of this analysis, we will be utilizing the Ichimoku Kinko Hyo system to identify long trade and short trade opportunities. The Ichimoku system provides a great way to predict where price needs to go in order to execute a future trade – and it does this with a high degree of positive expectancy. The strategy I will be using is from Manesh Patel’s book, Trading with Ichimoku Clouds: The Essential Guide to Ichimoku Kinko Hyo Technical Analysis. The rules and conditions for identifying the best predictable and positive entries will be used with the Ideal Ichimoku Strategy. This strategy is a personal favorite of mine.

Ideal Ichimoku Bullish Strategy Rules

  • Price above the Kumo Cloud.
  • Tenkan Sen greater than the Kijun Sen.
  • Chikou Span is greater than the price from 26 periods ago.
  • Future Senkou A is greater than the Future Senkou B.
  • Price is not far from the Kijun Sen and Tenkan Sen.
  • Tenkan Sen, Kijun Sen, and Chikou Span should not be in a thick Kumo Cloud.

Ideal Ichimoku Bearish Strategy Rules

  • Price below the Kumo Cloud.
  • Tenkan Sen less than the Kijun Sen.
  • Chikou Span is less than the price from 26 periods ago.
  • Future Senkou A is less than the Future Senkou B.
  • Price is not far from Kijun Sen and Tenkan Sen.
  • Tenkan Sen, Kijun Sen, and Chikou Span should not be in a thick Kumo Cloud.

Predicting an entry for Cardano: The Daily Ichimoku Chart

The daily Ichimoku chart is one that signals indecision and consolidation. One of the most important aspects of the Ichimoku system is that when price is inside the cloud, no trades should be taken. However, depending on the preferred timeframe for entries, this can be discounted. Regardless, when price is inside the Kumo – on any time frame – it is a sign of indecision and consolidation. Saying that there are a good number of conditions being met for a bullish entry. If we see the future Senkou Span A point up, then we can predict with a good amount of certainty that a bullish move is very near. The Chikou Span though remains inside the Kumo and there is a significant range from the Chikou Span to the top of the cloud. It would take around 5 more trading days before the Chikou Span would be in a good position to move above the Kumo – if that happens, then a long entry would occur near the 0.0503 price level. A short trade would be more difficult as price not only needs to drop a considerable amount to be below the Kumo, but the Chikou Span needs to drop below the cloud and move below the swing low at 0.0355.

Predicted long entry target: 0.0503 only on or after February 26th, 2019
Predicted short entry target: 0.0355

Predicting an entry for Cardano: The 4-hour Ichimoku Chart

The 4-hour Ichimoku chart is my preferred entry chart, it’ a good mix between long- and short-term trading (in my definition). It is very important for price to remain above the Kijun Sen to maintain any bullish bias moving forward. Ideally, we would see price find support and bounce higher to eventually cross above the Tenkan Sen, which would generate a long entry at 0.0472. On the short side, we would be looking to see the Chikou Span move below the candlesticks and enter a short at 0.04038.

Predicted long entry target: 0.0472
Predicted short entry target: 0.04038